ACTH

Questcor Pharmaceuticals has been tinkering with their business over the past few years. They picked up another neurological medication, Doral, and sold offÂ their other medications to the tune of $28.3 million. Then a year ago theyÂ submitted an sNDA (supplemental new drug application) to the FDA asking that Infantile Spasms be added as an indicated use for Acthar Gel.Â In May they found out the FDA denied the sNDA. Their CEO resigned and 2 months later they jacked the price of Acthar.

Now some disgruntled ex-employees are ‘speaking out’. A member of our support group posted this…found here. It is a forum for Questcor.

Questcor laid off 80% of it’s sales force (not sure why you even need
a salesforce for a product that sells itself). Most of the laid off
sales people are obviously angry and they are also upset about the
price increase. Here is one of their posts:

Questcor announces new CEO
2007/09/19 08:07:47

UNION CITY, Calif., Sept 19, 2007 (BUSINESS WIRE) — Questcor
Pharmaceuticals, Inc. (AMEX:QSC), a specialty pharmaceutical company,
today announced the appointment of Orenthal James Simpson as
President and Chief Executive Officer. Mr. Simpson has also been
appointed a member of Questcor’s Board of Directors.
“The Board sought an accomplished cutting edge individual with
substantial expertise in public relations and lack of moral values,”
explained Al, Chairman of the Board. “Additionally, the Board
assessed each candidate’s track record and capability to think
creatively about Questcor’s business. We looked for a talented
executive who would positively elevate the public’s perception of
Questcor pharmaceuticals and someone who wouldn’t mind lauping the
heads off of 80% of the sales force. We believe that in “the Juice”,
as he is affectionaltely referred to as by the three remaining home
office members, we have found that executive. His successful track
record in sales, burglery, double homicide, and general management,
coupled with his energy and enthusiasm, convinced us that we had
found the right individual to lead Questcor.”
Prior to joining Questcor, Mr. Simpson played professional football
for the Buffalo Bills. Following a brief, yet successful acting and
broadcast carreer, Mr. Simpson stood trial for double murder. His
Heisman trophy is proudly encased in the lobby of Questcor’s
headquarters.

As I read through this forum, it sickens me to realize that they announced the price increaseback in APRIL!! If I had only know. We could have been spreading negative press for months prior to the increase and warning neurologists!! You can better believe I am going to follow it now.